As the average price of dwellings in Seoul has surpassed 1 billion won for the first time, a so-called "triple rally" is unfolding, with sale prices, jeonse deposits, and monthly rents all jumping at once even in Gyeonggi Province.
According to the May nationwide dwellings price trend survey released by the Korea Real Estate Board (REB) on the 15th, the May sale price index for all dwellings in Seoul (including apartments, detached houses, and row houses) recorded a 0.90% rise. That is 0.35 percentage points higher than the previous month (0.55%)ㅂ. It is also the steepest pace since January this year (0.91%).
Seongbuk District (1.36%) posted a sharp increase mainly in large complexes in Gireum and Jongam neighborhoods, and Songpa District (1.19%), Gwangjin District (1.18%), Seodaemun District (1.06%), Nowon District (1.05%), and Gangseo District (1.04%) also showed strength.
This heat has spread to Gyeonggi Province. Gyeonggi (0.24→0.31%) showed notably steeper gains in cities such as Gwangmyeong (2.01%) and Dongtan District in Hwaseong (1.57%), while Incheon (-0.06%) fell mainly in Seo and Namdong districts. For the greater Seoul area overall (0.31%→0.46%), the gain widened by 0.15 percentage points.
The swings are even sharper for apartments, which serve as a barometer for the dwellings market. Seoul apartment prices rose 1.06% in May, regaining a 1% gain for the first time in four months since January. The cumulative figure through May (3.81%) is also double the same period last year (1.95%).
Gyeonggi (0.41%) rose 0.1 percentage point from the previous month, and Incheon (0.02%) was unchanged, bringing the overall greater Seoul area to a 0.55% gain. Apartment prices outside the greater Seoul area fell 0.04%, and the nationwide figure rose 0.25%.
An official at the board said, "The overall trend was upward as demand concentrated on newly built complexes and those pursuing reconstruction mainly in Seoul and the greater Seoul area," adding, "As rising transactions were detected in areas such as stationside zones, large complexes, and complexes pursuing reconstruction, demand concentrated, and the nation rose from the previous month."
The rental market is also running hot. In May alone, comprehensive jeonse prices for dwellings jumped 0.91% in Seoul and 0.51% in Gyeonggi. Songpa District (1.62%) saw high increases mainly in major complexes in Jamsil and Sincheon neighborhoods, and Seongdong District (1.44%) saw high gains mainly in large complexes in Oksu and Hawangsimni neighborhoods, while Nowon District (1.40%), Seongbuk District (1.30%), Dobong District (1.13%), and Gwangjin District (1.08%) also posted large rises.
Monthly rents also maintained high increases of 0.81% in Seoul and 0.47% in Gyeonggi. Districts such as Nowon (1.40%), Seongdong (1.27%), Seongbuk (1.10%), Gwangjin (1.08%), and Dobong (1.05%) posted high gains, centered on areas with favorable residential conditions. In particular, Seoul's monthly rent growth was the highest in 10 years and 11 months since statistics began to be published in June 2015, for both the comprehensive dwellings index and the apartment (0.95%) index.
In addition, the average purchase expense for all dwellings in Seoul surpassed the 1 billion won mark for the first time ever, reaching 1,010.7 million won. By type, the average apartment transaction price was 1,329.79 million won, followed by detached houses at 1,231.23 million won. By contrast, the average sale price of row houses remained at 376.08 million won.
Seoul's high housing barrier was also clearly revealed in the median price indicators. The midpoint value when listings are arranged by price was tallied at 772.59 million won on a comprehensive dwellings basis in Seoul. By detailed type, the apartment median price has already surpassed the 1 billion won line at 1,022 million won, while detached houses posted 940 million won and row houses posted 300 million won, respectively.